All Systems Go for Cisco

A JPMorgan downgrade is pressuring shares of Cisco Thursday. However, we expect that the stock, which is near a 52-week high, will soon recover.

This morning, analyst Rod Hall lowered Cisco Systems (ticker: CSCO) from Neutral to Underweight, and reduced his price target by $2, to $18. Hall cited concerns about Cisco's outsize exposure to enterprise spending, as he sees the potential for corporate information-technology demand to deteriorate in 2013. He also wrote that the risk/reward looks unfavorable at current levels, as...